By Maxwell Awumah
Ho, Oct 25, GNA-Reverend Dr Daniel Agbeko, a Microfinance Consultant and entrepreneur says progressive microfinance sector reforms is a collective priority targeted at addressing structural weaknesses, strengthening supervision and reposition the sector to contribute more effectively to financial inclusion and economic development.
He said the reform must go beyond institutional restructuring to establish a culture of good governance, stronger compliance and customer protection for optimum financial services for meaningfully socio-economic development.
Rev. Dr Agbeko, also a Senior Lecturer and Head of Department (HOD) of Multidisciplinary Studies, Ho Technical University, said this when he delivered the keynote address during the 2026 Annual General Meeting (AGM) of Micro-Credit Association Ghana (MCAG) in Ho.
The three-day event is under the theme: “Driving Progressive Microfinance Sector Reforms: The Role of Delegated Supervision and Regulation.”
He said the Bank of Ghana had introduced a revised microfinance sector framework aimed at strengthening governance and institutional accountability, protecting depositors and customers, improving risk management, expanding financial inclusion responsibly, embracing technology and innovation and building institutional sustainability and urged industry players to take advantage.
The Senior Lecturer described delegated supervision as an arrangement that legally authorises or formally designates regulatory authority and assigns specified supervisory functions to competent institution or supervisory body, subject to defined responsibilities, standards, reporting requirements and oversight.
He underscored that delegated supervision offered an important opportunity to expand supervisory reach, improve the frequency of monitoring, strengthen early-warning systems and support institutions that serve communities beyond the reach of conventional financial services.
The success of this approach, he said, would depend on clearly defined mandates, competent supervisory bodies, reliable information systems, appropriate enforcement and sustained accountability.
Rev Dr Agbeko emphasised that a well-designed delegated supervision arrangement promoted supervisory reach, earlier detection of problems, reduction of cost of routine oversight, promotes specialised expertise, creates opportunities for capacity building and argued that these benefits were not automatic but dependent largely by quality, independence, competence and accountability of the institutions performing delegated functions.”
The Consultant urged major actors to work together to build a microfinance sector that is accessible to the underserved, resilient in the face of emerging risks, innovative in its delivery of services and uncompromising in its commitment to protecting customers.
“Let us ensure that our reforms create institutions that people can trust, businesses can depend on, and communities can rely upon. And let us remember that effective regulation does not merely prevent failure; it creates the conditions for responsible success.”
“Effective supervision does not merely identify weaknesses; it helps ensure that risks are addressed before they threaten the people and institutions we seek to protect.”
Rev. Dr Agbeko said inasmuch as delegated supervision presents significant opportunities, it also comes with baited potential weaknesses adding, delegation without adequate safeguards and protection may produce conflicts of interest, inconsistent supervisory practices, inadequate reporting and delayed intervention.
Mr Benjamin Tuckson Jr, Board Chairman of MCAG said the Association must adapt, while remaining anchored in its core values of integrity, service excellence and partnership.
“The future of the industry depends on the ability to embrace reform, strengthen institutions, invest in people, adopt appropriate technology and uphold high standards of governance and consumer protection. The reputation of the industry is collective. Let us strengthen our partnership with the regulator, our institutions and our Association.”
GNA
Edited by Linda Asante Agyei